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Questions tagged [calculation]

A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.

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1
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1answer
691 views

How do I calculate the past value of a loan?

I have a loan that was originally $100,000. It is worth $116,971.41 today. It has been accruing 6% annual interest, compounded daily. I do not know the start date. How do I calculate what the value ...
1
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1answer
114 views

Compound Rate as a Function of Market Interest Rate

I have these two pictures from Investopedia. Here is the link to the page. I am confused by this concept. How is the quarterly compound rate 11.825% with a 12% annual rate? Furthermore, how is the ...
2
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3answers
4k views

compute the principal and interest for a specific month (period) on an amortized loan

I can easily compute the monthly payment for a loan given the amount, the number of periods, and the periodic rate. From that, I can easily build an amortization table iteratively by subtracting the ...
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1answer
688 views

Does a one time additional payment reduce the interest paid on a Prosper or Lending club personal loan

I have a loan with Lending Club with a certain interest rate. So every month I pay the principal as well as about $200 in interest. Assuming the loan balance left is $20000 and the interest rate is 7%,...
8
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2answers
27k views

What is the formula for the monthly payment on an adjustable rate mortgage?

Can people tell me how monthly payments are calculated when a mortgage has an initial rate? What is the formula? I have seen online calculators but not formulae. My guess is: We assume that the ...
6
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1answer
4k views

Cash Advance causes recurring interest fee after paid in full

In January I made a cash advance of $110 with my credit card. In Februaury, I paid off January's balance (+$10 cash advance fee +$1.82 cash advance interest) in full by the statement due date. This ...
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1answer
816 views

How to calculate take home salary in Sacramento, California? [duplicate]

How can I calculate my take home pay in Sacramento area in California? I have an offer of USD 95,000 per year in Sacramento. After searching multiple sites for tax calculations, I understood that it ...
2
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1answer
603 views

How to calculate the effective interest rate of a loan that must be paid back with interest as lump sum

An example question asks: Student Bank has agreed to lend you funds to complete the last year of your degree. The bank will lend you $2,400 today, if you agree to repay a lump sum of $4,000 in ...
3
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2answers
679 views

How to calculate multiple debt payments with additional lump sum and varying additional monthly payments

I'm attempting to create a calculator that I can use to try different debt repayment scenarios. If I have multiple debts with different rates I'm wondering what algorithm to use to figure out how long ...
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1answer
78 views

Dividends Growing Faster than Cost of Capital

If a share's dividends are assumed to be indefinitely growing faster than the cost of capital (discount rate) then the net present value of all future dividends for the share can be shown to be ...
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2answers
725 views

Calculating theoretical Present Value

If I were to win the lottery and the present winnings were less than twenty million paid out over a time period of twenty years, how would I theoretically find the present value amount?
3
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3answers
2k views

How to know how much interest paid per payment in a fixed tenor personal loan

I recently took up a personal loan. I do not have any financial background and I do not have any issue paying the loan but I am just curious on how they come out with some numbers. To be precise, the ...
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1answer
42 views

How can I retrieve any weights from the portfolio on the EF?

Efficient Frontier image In an efficient frontier build with sample moments, I'd like to retrieve weights from any portfolio on the efficient frontier knowing only the standard deviation and the ...
0
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1answer
360 views

How to find leverage for futures [closed]

In my understanding, leverage is the risk we take for our investment. That is highly leveraged instruments have high risk and high potential reward. But how can we calculate leverage of futures? ...
3
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1answer
359 views

How to compute real return including expense ratio

I am currently hesitating between 2 similar International Index Fund, FSIVX and FIENX. FSIVX have an expense ratio of 0.12% while FIENX have 0.63%. I can try to compare them side by side on google ...
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1answer
1k views

Predicting future expenses

I'm trying to develop a tool that predicts my future expenses based on my past expenses. Example: I've spent $150, $200, and $180 on fuel during each of the last three months. Accounting for the ...
0
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1answer
405 views

How do I calculate the Present Value of a future amount

I have a requirement to calculate the present value of a future value taking into consideration an interest rate and tax rate. This is to be used in an insurance calculator so I need the answer to be ...
6
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1answer
496 views

How do I determine how long it will take to pay off my all my loans?

Right now I have a spreadsheet with the loans I have, the interest rates the are each at, and how much I am putting toward each in monthly payments. I then calculate how long each loan will take to ...
2
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1answer
584 views

How to find an optimum linear combination of various investments?

Say an investor with 1 million dollars want to put his money on several investments. Say investment outcomes on those investments are $x_1, x_2, x_3, x_4, ... x_n$ The investor need to put w1 on x1, ...
0
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1answer
3k views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
0
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1answer
150 views

Why Are Percentage Gains Used for Capital Gains Tax Calculations?

In the context of UK investments, I'm led to believe that encashing a general investment account (OEIC/UT) can result in a capital gains tax liability. My understanding is that when calculating this ...
3
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1answer
314 views

How do I calculate the modern-day value of pre-euro currencies (inflation correction)

I'm trying to calculate the modern value of 1950's Dutch guldens (guilders). Usually I'd use Wolfram Alpha for such a task, but it doesn't seem to understand pre-euro currencies. This works fine: ...
2
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1answer
126 views

Does the Social Security taxable wage cap also cap payouts, not just contributions?

I recently saw Bernie Sander's quote: Right now, Trump pays the same amount of money into Social Security as someone who makes $118,500 a year. Time for a change. Now this seems to be true. There ...
4
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5answers
945 views

If you buy something and sell it later on the same day, how do you calculate 'investment'?

Source: p 603, A Concise Introduction to Logic (12 Ed, 2014) by Patrick Hurley A similar misuse of percentages is committed by businesses and corporations that, for whatever reason, want to ...
3
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3answers
849 views

How do I calculate the starting balance required

Suppose I require a payment of $25,000 per year over 20 years, with an inflation rate of 3%, an earning rate of 5%, a tax rate of 20% and a final balance of $0. What is my starting balance to achieve ...
1
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1answer
497 views

How to calculate mutual fund return

How do you calculate the annual return of a mutual fund? I understand roughly how mutual funds work, and I'm trying to decide which mutual funds to invest in, but to prove to myself that I understand ...
2
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3answers
326 views

Simple Interest to Compound Interest

In simple annual interest terms 60/2000 is 3%. But what is the rate if this is the total interest paid on 2000 after monthly compounding over 3 years?
1
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1answer
2k views

IRR vs. Interest Rate

I'm working on a project, and I have problems with the understanding of certain areas. I don't understand why the increase in interest rates increases the IRR? Could someone explain this to me?
0
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1answer
88 views

Can I evaluate the performance of a company using just OHLC data?

Is there any way to calculate finance for a company if I have Open, Close, Low, High, Adjusted Value of stocks and it's trade volume in each day, for 6 months? I read many ways to calculate the ...
4
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2answers
2k views

How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
3
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2answers
835 views

Compounded Interest on Mutual Funds

I may be missing or misunderstanding something regarding how compound interest works with mutual funds and ETFs. Let's say I have $10,000, and I invest said monies in mutual fund XXXXX at $100/share, ...
12
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2answers
2k views

Does the history of credit utilization affect FICO score?

Most people are aware that the debt to credit limit ratio is a vital part of the FICO score. The FICO score is updated every time new information is received by the credit bureaus. However, is it ...
2
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2answers
184 views

How would I compute the difference between purchase and lease-to-purchase offers?

I'm looking at getting a new car, and this Toyota Avalon lease deal seems like a better deal then buying. However, I've always heard that leases are not the smart way to go. When I do the math the ...
2
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1answer
100 views

Why do dividend reinvestments not match my calculator?

I've seen this occur numerous times in my IRAs. In the transaction section of my Fidelity IRA, it shows a line item Reinvestment XXX with a dollar amount. Clicking the details will display the ...
9
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3answers
2k views

Overpaying on mortgage - How is term reduction calculated?

Just for some example figures: Original Term: 25 Years Loan Amount: £100,000 Interest rate: 2% I'm trying to make an excel table which keeps track of my mortgage payments including overpayments. ...
4
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2answers
1k views

How do you calculate the annualised return of your portfolio from the annualised returns of each of your funds?

I've invested in a number of mutual funds, and I've calculated the annualised return of each of them, using a spreadsheet (and the xirr function). I want to calculate the annualised return of the ...
2
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2answers
80 views

Calculation for Hypothetical Short Position

I'm trying to calculate the gain on a short position. I think I have the correct calculation, I just want to make sure I am correct. Here's the data: 1. Entered position with stock price at $28.07. ...
1
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0answers
52 views

Add-On CD Formula

I'm starting to learn a lot about finance/investing on my own but I'm struggling with the calculations behind Add-On CDs. I opened an 14-Month Add-On CD with a $1000 deposit with a monthly $30 add-on ...
11
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1answer
1k views

Why might Social Security employee deductions from paycheck vary across pay periods?

What percentage of salary deducts for an employee's Social Security contribution? And why will there be a difference in % deducted? My salary statement for October and September 2015 has the same ...
1
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1answer
3k views

How much in CPP contributions do you pay when you are an independent contractor?

I am trying to figure out how much CPP contributions an IT contractor needs to make as per this CRA guide. It says that for self-employed people, we need to contribute $4959? So, if an independent ...
2
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1answer
270 views

Checking the math on a Truth-in-Lending Disclosure

Here is a shot of an actual Truth-in-Lending statement for a real home mortgage (mine). I'm trying to check the numbers but they seem slightly off: It's a 30-year fixed rate mortgage. The annual ...
2
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2answers
733 views

What would be my tax liability in Zurich, Switzerland?

What would be my tax liability as a single individual, resident of Zurich (not citizen), not a member of any church, with a 90,000 Swiss Franc yearly salary? Let's just take into consideration basic ...
2
votes
1answer
358 views

Excel formula for calculating interest rate of earning

On January 1st I invest 1238. I do this every January 1st for 20 years. At the end of 20 years (So December 31st of the 20th year), I have 32880 in the account. What's my rate of interest? By playing ...
1
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1answer
106 views

Calculating long intervals of Interest with Simple Interest Formula

My last post Calculating long intervals of Interest calculates interest using compounding formula. But what about calculating simple interest accrued where the day count is actual/actual and it goes ...
2
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2answers
105 views

Calculating long intervals of Interest

Small interval calculations is fairly straight forward. But what about long intervals. If a loan's daycount is set to Actual/Actual and the duration has run into two different DayCount intervals, how ...
4
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3answers
6k views

Loan repayment calculation and monthly compounding interest problem

I need to write a mock up application that returns a quote to potential borrowers. The specification says that "The monthly and total repayment should use monthly compounding interest". Program ...
3
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2answers
436 views

Stochastic Oscillator for Financial Analysis

I have been using the stochastic oscillator indicator to get some insight on particular stocks. Below is an example of a 14-day lookup period for K where D is a calculated as a 3-day average of K. ...
2
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3answers
458 views

Hypothetical: can taxes ever cause a net loss on otherwise-profitable stocks?

Let's imagine a hypothetical situation: I start with $100, and buy 10 shares of a company at $10 each. The next day I sell the 10 shares at $12 each. A week later, the price drops back to $10 and ...
2
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1answer
4k views

How to calculate new price for reverse split?

I have the following position ABC 500 shares @ $120.00 ABC is trading at $15.00. $60000 - $7500 = -$52500 ABC did a reverse split 1:5. An 80% decrease in shares. After the split, it is trading ...
3
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2answers
1k views

Adjusting a value for inflation each month using rolling 12-monthly inflation figures

I have a figure that I want to adjust for inflation each month. I have monthly values for the UK Consumer Price Index but these are each for the change over the preceding 12 months. If my base value ...